![](\"https:\/\/s3.amazonaws.com\/snd-store\/a\/71389216\/03_31_22_486737212_epb_560x292.jpg\")
<\/p>\n<\/p>\n
Are you, or is your spouse, a non-U.S. citizen? If so, several traditional estate planning techniques won\u2019t be available to you. However, if you\u2019re a U.S. resident, but not a citizen, the IRS will treat you similarly to a U.S. citizen.<\/p>\n
If you\u2019re considered a resident, you\u2019re subject to federal gift and estate taxes on your worldwide assets, but you also enjoy the benefits of the $12.06 million federal gift and estate tax exemption and the $16,000 per recipient annual exclusion in 2022. And you can double the annual exclusion to $32,000 through gift-splitting with your spouse, so long as your spouse is a U.S. citizen or resident. Special rules apply to the marital deduction, however.<\/p>\n
Understanding residency<\/strong><\/p>\n Residency is a complicated subject. IRS regulations define a U.S. resident for federal estate tax purposes as someone who had his or her domicile<\/em> in the United States at the time of death. A person acquires a domicile in a place by living there, even briefly, with a present intention of making that place a permanent home.<\/p>\n Whether you have your domicile in the United States depends on an analysis of several factors, including the relative time you spend in the United States and abroad, the locations and relative values of your residences and business interests, visa status, community ties, and the location of family members.<\/p>\n Estate tax law for nonresident aliens<\/strong><\/p>\n If you\u2019re a nonresident alien \u2014 that is, if you\u2019re neither a U.S. citizen nor a U.S. resident \u2014 there\u2019s good news and bad news in regard to estate tax law. The good news is that you\u2019re subject to U.S. gift and estate taxes only on property that\u2019s \u201csituated\u201d in the United States. Also, you can take advantage of the $16,000 annual exclusion (although you can\u2019t split gifts with your spouse).<\/p>\n The bad news is that your estate tax exemption drops from $12.06 million to a miniscule $60,000, so substantial U.S. property holdings can result in a big estate tax bill. Taxable property includes U.S. real estate as well as tangible personal property (such as cars, boats and artwork) located in the United States.<\/p>\n Determining the location of intangible property \u2014 such as stocks, bonds, partnership interests or other equity or debt interests \u2014 is more complicated. For example, if a nonresident alien makes a gift of stock in a U.S. corporation, the gift is exempt from U.S. gift tax. But a bequest of that same stock at death is subject to estate tax. On the other hand, a gift of cash on deposit in a U.S. bank is subject to gift tax, while a bequest of the same cash would be exempt from estate tax.<\/p>\n We can help you determine which property is situated in the United States and explore strategies for minimizing your tax exposure.<\/p>\n \u00a9 2022<\/em><\/p>\n <\/body> Are you, or is your spouse, a non-U.S. citizen? If so, several traditional estate planning techniques won\u2019t be available to you. However, if you\u2019re a U.S. resident, but not a citizen, the IRS will treat you similarly to a U.S. citizen. If you\u2019re considered a resident, you\u2019re subject to federal gift and estate taxes on […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,48,10],"tags":[8,11,12],"class_list":["post-15964","post","type-post","status-publish","format-standard","hentry","category-articles","category-estate-planning","category-news","tag-articles","tag-news","tag-updates"],"_links":{"self":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/15964","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/comments?post=15964"}],"version-history":[{"count":0,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/15964\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/media?parent=15964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/categories?post=15964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/tags?post=15964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n<\/html><\/p>\n","protected":false},"excerpt":{"rendered":"